Another buyer cancels purchase of prime HCMC land plot

Hanoi-based Binh Minh Trading and Development Investment Co. Ltd sent a document to related units Tuesday, dropping a deal to buy the 3-9 plot that spreads over 5,000 square meters in Thu Thiem, said Le Duy Minh, head of the city's Tax Department.

The plot was sold at VND5.026 trillion ($223 million), or 6.9 times the reserve price last December.

Thu Thiem New Urban Area in the peninsula of the same name is a 657 hectares (1,623 acres) megaproject to develop the city into an international financial hub.

So far, four companies had won auction for four land lots in the area and two have already pulled out.

Hanoi-based property developer Tan Hoang Minh said in January that it would not go ahead with the purchase of a 10,060-square-meter lot in Thu Thiem.

Binh Minh forfeited a deposit of more than more than VND145 billion while the corresponding sum for Tan Hoang Minh was VND588 billion.

The other two winning bidders, however, have yet to submit any land use fees to the tax authorities.

As regulated, after winning the auction on Dec. 10 last year and signing the contracts to make deposits for the land plots a week later, they have to pay the registration fee and half of the land use fee within 30 days from the date of notification on Jan. 6.